advice on buying into a buisness please!!

[siroe42]

Hello everybody!
My name is Simon, and im new here and thought id register to see if anyone has any advice for me.

I currently work as a Manager/ dog groomer and all round dogs body of a Boarding Kennels. As well as the kennels, we also offer full grooming service for dogs in our care, and the salon is also used 7 days a week for customers who bring dogs to us, or we collect and deliver. We also run a mobile dog grooming service which operates 4 days a week, taking our services to customers homes. The two buisnesses are run separate from each other.

I have worked for my current employer now for nearly 4 years, and have enjoyed being part of it, the responsibilities and watching and helping the buisness grow over that time. Not to big myself up, but my employer is the one with the money, and im certainly the one with the ideas and know how. I know the buisness would struggle without me as i work between 50 - 60 hours weekly on a small wage. As well as my regular duties, i deal with all the building and land maintenance, from dog poo drains to leafs in the gutter! There isnt a minute that goes by every working day that i wont look at something and try to find a way of improving it!

My employer has sugested becoming more financially involved in the buisness. This is where i need your help!! What should i be looking out for? What should i be offered? What should i be asking for? And what should be included?! Ive got a bad credit history so where do i go for funding? and will it actually be a benifit, or should i just stay as 'employee'?? :|

Any advice would be gratefully appreciated.
Regards

 

[Newcott]

You'll need alot of information from your current employer before making an informed decission.

Like what's the profit, how much of a % would you see of it, what are they expecting you to put in, what other benefits will you get out (decission making powers ect...)

Also I'd be quite cheeky and ask what thier motivation is for getting you more involved - what do they think will be the benefit to them?

First off all I'd sit down and get as much infor as you can get - just a Q&A session then get yourself a accountant and/or a solicitor to give you legal advice on it

 

[MyAccountantOnline]

Also I'd be quite cheeky and ask what thier motivation is for getting you more involved - what do they think will be the benefit to them?

So would I - what do you get out of the deal working 60 hours per week on low pay and giving some of your money to your employer?

If you want to run your own business what's stopping you setting up on your own - look at the profitable aspects of the business and think of how you could do it perhaps better?

 

[gordano]

From what you say it seems your employer benefits greatly by paying you a small wage in contribution to the business success. I would want to know more from the employer by what the mean by "financially involved". It does not sound like your employer needs money to be invested? Maybe you could work out a profit share agreement where your efforts are rewarded by a share of the profits?

As already posted by others, be wary before investing money, even if the business profits look good if you became a minority shareholder your investment cannot easily be sold (at least sold at a fair price).

 

[S-Marketing]

If they want to give you a stake in the business to compensate for your low wage and as acknowledgment for all your hard work, take it. If they want you to 'buy in' to the business they are probably having cash flow issues and you should run a mile.

If its the latter, tell them to stick it and go and set up on your own. Its an incredibly easy and cheap business to set up and run. In fact with the barriers to entry being next to none, i'd probably say set up on your own regardless of their offer.

 

[MyAccountantOnline]

If they want to give you a stake in the business to compensate for your low wage and as acknowledgment for all your hard work, take it. If they want you to 'buy in' to the business they are probably having cash flow issues and you should run a mile.

If its the latter, tell them to stick it and go and set up on your own. Its an incredibly easy and cheap business to set up and run. In fact with the barriers to entry being next to none, i'd probably say set up on your own regardless of their offer.

Couldnt have put it better myself

 

[siroe42]

Thats wonderful guys thank you for your quick and useful responses. I agree im going to have to do alot more research into this and i suppose the big question is what do i get out of it??!!
You all speak perfect sense and i will write down some questions and ask my employer for some answers before i go any further.
The buisness is and hopefully always will be successful, so it could be a really good oppotunity for me.
Thank you once again
si

 

[Plastic Cards]

As stated you need to gather information before making an informed decision.